Potential Trinity Industries, Inc. (NYSE:TRN) shareholders may wish to note that insider S. MacLan recently bought US$200k worth of stock, paying US$19.59 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 319%, potentially signalling some real optimism.
Check out our latest analysis for Trinity Industries
The Last 12 Months Of Insider Transactions At Trinity Industries
Notably, that recent purchase by S. MacLan is the biggest insider purchase of Trinity Industries shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, at around the current price, which is US$19.60. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 14.20k shares worth US$274k. But insiders sold 3.43k shares worth US$74k. In total, Trinity Industries insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Trinity Industries
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Trinity Industries insiders own 2.3% of the company, worth about US$53m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Trinity Industries Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Trinity Industries we think they are probably pretty confident of a bright future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Case in point: We’ve spotted 4 warning signs for Trinity Industries you should be aware of, and 1 of these shouldn’t be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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